Karen Co.computes depreciation to the nearest whole month and uses the straight-line method.On April 2, 2010, the company purchased an asset for $14, 000 with a four-year life and a $2, 000 residual value.On November 6, Karen also sold an asset with a cost of $34, 500 that had been purchased in 2008.The sold asset had been estimated to have a five-year life and no residual value when it was purchased.The depreciation expense on these two assets for 2010 totals
A) $8, 000
B) $7, 200
C) $7, 800
D) $7, 600
Correct Answer:
Verified
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